HC Deb 08 November 1983 vol 48 cc135-6
7. Mr. Eastham

asked the Secretary of State for Employment if he will make a statement on criteria for appointment as youth training scheme management agencies.

Mr. Peter Morrison

Managing agents are required to demonstrate that they meet the agreed criteria for the content and design of schemes as well as having the ability to deliver the training programme proposed.

Mr. Eastham

Is the Minister aware that there is a growing and grave suspicion about some of the privatized management agencies? Is he further aware that in the north-west one cosy, family company is reputed to be running an organisation worth £30 million of business? Should not the money be spent on training rather than on lining people's pockets?

Mr. Morrison

The hon. Gentleman will know and appreciate that all schemes, from whatever source of managing agent, must meet certain criteria and be approved by the area manpower boards. I agree that when using large sums of taxpayers' money it is important to ensure that they are properly supervised.

Mr. Iain Mills

Does my hon. Friend agree that much of the criticism about mode A places has been politically inspired? Is he aware that, in Meriden, getting the MSC to approve a managing agency is a difficult and critical business? Is not that practice right? Are not the achievements of mode A places for YTS trainees in the midlands an excellent example of the scheme?

Mr. Morrison

I agree that much of the criticism has been politically inspired. The area manpower boards are solicitous when considering proposals put to them, and rightly so.

Mr. Canavan

Does the Minister agree that proper regard to health and safety should be a criterion, especially in view of the youngsters who have been killed or injured on the schemes? Is the hon. Gentleman aware that at the recent court case following the fatal accident referred to by my hon. Friend the Member for Monklands, West (Mr. Clarke), a director of the company found guilty of negligence had the brass neck to turn up at the court wearing a Tory party badge? He was a Tory party candidate at the general election.

Mr. Morrison

The health and safety aspects of the scheme are crucial. The hon. Gentleman heard what my hon. Friend the Minister of State said earlier.

Mrs. Rumbold

Notwithstanding my hon. Friend's caveats about management agencies, is it not important that there should be a mix of private employment agencies with those set up in concert with local authorities?

Mr. Morrison

I agree with my hon. Friend. I am pleased that a substantial number of private employers have come forward as managing agents. Some of the training will be carried out by private concerns. That is the right way to proceed.

Mr. Sheerman

How many management agencies under the old YOP scheme failed to apply successfully to be management agencies under the new scheme? Under the old scheme, were not some of them poor employers and trainers, who used youngsters as cheap labour?

Mr. Morrison

I cannot answer the hon. Gentleman's question because there were no management agencies under the YOP scheme. There were a significant number of sponsors. There are approximately 4,000 management agencies under the youth training scheme, which include many of the sponsors under the old YOP scheme.